On July 25, Michael Kors (KORS) announced that it has entered into a definitive agreement to acquire Jimmy Choo (CHOO) for $1.2 billion. Let’s look at what Michael Kors could gain from the acquisition.
Coach (COH), one of America’s leading handbag designers and sellers, has risen 35% year-to-date. Coach recently announced the acquisition of rival Kate Spade (KATE) for $2.4 billion.
Michael Kors (KORS) has a strong cash flow position. The company ended fiscal 4Q17 with cash and cash equivalents of $228 million and net debt of -$95 million.
Michael Kors (KORS) reported an 11.2% year-over-year decline in its fiscal 4Q17 sales to $1.2 billion, beating Wall Street by ~$10 million. For fiscal 2017, KORS’ total sales fell 4.6% to ~$4.5 billion.
Michael Kors (KORS) reported fiscal 4Q17 EPS of $0.73, $0.03 higher than analyst estimates. KORS’ revenues fell 11.7% year-over-year to ~$1.1 billion, beating the consensus by $10.0 million.
Kate Spade’s (KATE) share price tanked 14.6% on Tuesday, April 4, as Reuters reported Monday evening that the handbag manufacturer had sought more time from Coach (COH) to consider its buyout offer.
VF Corporation’s D2C revenues rose 11% YoY, gaining strength from a mid-teen surge in the Outdoor & Action Sports and a low double-digit rise in Jeanswear.
Kate Spade New York (KATE) reported a 10% rise in its 4Q16 sales to $471 million. Its 4Q16 comps stood at 9.3%, compared to 3Q16’s 7% and 2Q16’s 4% comps growth.
KATE’s strict cost-control measures resulted in a 390-basis-point fall in its selling, general, and administrative rate, which fell to 39.1% of its sales in 4Q16 from 43.0% in 4Q15.
Kate Spade New York’s stock price made big strides yesterday after the company confirmed that it was reviewing strategic alternatives while reporting its 4Q16 results.
On January 25, 2017, CLSA downgraded Coach’s rating to “outperform” from “buy.” Atlantic Equities downgraded Coach’s rating to “neutral” from “overweight.”
Kate Spade (KATE) rose more than 23.0% on December 28, 2016, after the report that the company is planning to sell its businesses with the help of investment banker.
Kate Spade’s top line and bottom line beat Wall Street estimates, with revenue rising 15% YoY to $316 billion—nearly $5.5 million more than expectations.
Coach’s stock has gained 12% year-to-date Coach (COH) has done reasonably well in the stock market this year. As of November 2, 2016, the company was sitting on a YTD (year-to-date) profit of 8.4%. It has outperformed the S&P 500 Apparel and Accessories index, which had fallen 5.5% YTD. Coach, along with six other apparel and accessory companies, […]
Coach’s margins and sales improve Coach (COH), one of the most established players in the US affordable luxury segment, reported results for 1Q17 on November 1, 2016. As discussed in the previous two sections, the company’s sales improved 1% on strong international business and positive sales comps in North America. The company also reported an […]
Coach (COH) reported its results for the first quarter of 2017 before the market opened on November 1, 2016. Although the company reported earnings per share in line with Wall Street analysts’ estimates, it missed revenue estimates.
Kate Spade (KATE) reported weaker-than-expected 2Q16 results on August 3, 2016, recording EPS of $0.11, as compared to the Wall Street estimate of $0.14.
Fossil fell by 4.6% to close at $28.13 per share during the fifth week of August, with weekly, monthly, and YTD price movements of -4.6%, -4.8%, and -23.1%.
PVH Corporation distributes its clothing and accessories through its wholesale partners, its own retail locations, licensing channels, and e-commerce sites.
Ralph Lauren reported a decline of 6% in global e-commerce revenues. This is unlike the general trend that has been noticed among the apparel and fashion companies.
Coach reported a 15% YoY increase in its top line in 4Q16. Its fiscal 2016 net sales rose 7% on a reported basis and 9% on a constant currency basis to $4.5 billion.
Kate Spade has predicted that its top-line growth will be in the 11.0%–13.5% range in fiscal 2016, which is in line with the consensus average of 13.5%.
KATE’s top line grew by 9.1% YoY (year-over-year) in fiscal 2015, as compared to a 7.7% YoY increase for Michael Kors and a 12.7% YoY decline for Coach.
Kate Spade recorded total sales of $1.3 billion in the past twelve months. Michael Kors and Coach saw sales of $4.7 billion and $4.3 billion, respectively.
Kate Spade’s primary target audience is middle- and upper-middle class consumers, particularly women, which accounted for 70% of Kate’s net sales in 2015.
KATE’s Jack Spade offers fashion products for men. The Kate Spade New York brand product line primarily sells handbags, apparel, and other accessories.
Based in New York, Kate Spade is a designer and manufacturer of apparel, women’s handbags, and accessories that operates under Kate Spade and Jack Spade.
Ralph Lauren’s (RL) fiscal 2016 revenue rose by 1% YoY (year-over-year) on a constant currency basis. It fell 2.8% YoY on a reported basis to $7.4 billion.
Fossil Group’s stock opened 28% higher than its closing price on February 16, 2016, as it exceeded expectations. If we look at its post-rally price return over the last year, the stock has returned -47.3%.
Let’s compare Fossil with its peers. The price-to-earnings ratios of Fossil, Coach, Kate Spade, and Guess? are 7.5x, 21.9x, 31.8x, and 18.2x, respectively.
Coach (COH) will declare its 4Q15 and fiscal 2015 results on August 4. Consensus Wall Street analyst estimates project sales at $974 million in the quarter.
Coach expects to realize $160 million in annual savings due to its restructuring initiatives from fiscal 2016 onward. It also expects to maintain its annual dividend of $1.35 per share.
Compared to its peers, Coach has provided higher total year-to-date returns to its shareholders. And, the stock’s up by over 9% since the company’s last earnings release on January 29, 2015.
When a country depreciates its currency, its major trading partners depreciate their own currencies. They do this to save their economies from entering into deflation.
Coach, Inc. (COH) distributes products through wholesale and direct-to-customer channels. It runs wholesale shops-within-shops at major department stores.
Coach is a well-known premium fashion brand. In recent years, Coach has faced increasing competition from newer entrants in the affordable luxury market.
Coach shares fell in June after the company said it will close 70 out of its 351 North American full-price stores by the end of the first half of 2015.
